VOD is exploding across the globe and brands that understand this space, as well as their consumers’ mindset will have access to an ever-expanding demographic. The right consumer and market intelligence helps brands hone this understanding to a razor’s edge and take advantage of this VOD surge that shows tons of promise for brand advertising.
Brands don’t want to be the last to the table here, as emerging trends continue to get their legs in the VOD space. It’s a land of opportunity and discovery. With that in mind we’ll briefly cover the VOD terrain with a look at:
- Global brand advertising trends
- How the EMEA brand advertising market is ripe for VOD disruption
- Why consumer intelligence and market intelligence are brands’ best competitive tools
And of course, before we get rolling, here are a few VOD statistics to pique your advertising interests:
- According to Deloitte, 80% of consumers in the US are subscribers to at least one VOD service. This is up from 73% in their survey conducted pre-COVID.
- The global VOD market is forecast to increase by over $69B through 2024 at a projected CAGR of 15% according to a recent Businesswire press release.
- In their latest TV Viewership Report, Effectv found a 15% increase in the daily time users spent watching VOD services as compared to the same time last year.
And with the aim of understanding emerging trends in VOD, let’s take a quick peek into the state of advertising as it stands today.
Global Brand Advertising Trends
Without knowledge of the looming pandemic in 2019, forecasters generally predicted growth of about 7% for overall global ad spend in 2020. With the coronavirus still running its course late in the year, it now looks to retract by 4.9%.
While ad spend as a whole is taking a fiscal step back, the digital facet is still slated to eek out positive growth; from $325B in 2019 to $332B in 2020, for a growth rate of 2.4%. While this is no surprise all things considered, forecasts remain optimistic for a return to a semblance of normalcy in digital advertising market movements for 2021.
With the onset of the pandemic, many brands looked to cut costs immediately to conserve resources for riding out the storm. Advertising was one of the areas that saw extensive cuts from brands’ budgets and helps to explain the microscopic incline in ad spend this year. The uncertainty has been tangible.
That being the case however, the pandemic has helped to accelerate previous trends and shifts in the market which have directly impacted advertising focus. For one thing, the decline in standard television viewership has been exacerbated as consumers gobble up VOD services.
Print resources have seen a landslide of audience and ad dollars continue to fall away as digital options garner more attention. This digital media market is still growing market share as new dollars continue to pour in. Ad revenue from radio continues its migration into podcasts and music streaming services.
With all of the upheaval however, one thing that hasn’t changed in advertising is video’s hold on the throne.
EMEA Brand Advertising Market Ripe for VOD Disruption
Brands spend a lot of time sorting out which accelerated or emerging trends matter most, and those with interests, or reach into the EMEA region will want to pay attention as VOD continues its path to dominance.
If the VOD market follows forecasts, then the Europe, Middle East and Africa (EMEA) market stands to outgrow the North American market within the next four years. Likewise, the Asia-Pacific (APAC) market stands to do the same.
This will, of course, be accomplished by the ongoing digital transformation which pushes out legacy media channels for their shiny new digital counterparts. As users in these areas continue to flock to VOD services, marketers will have unprecedented access to a large swath of ears and eyes that have recently abandoned their linear television programming.
As more consumers flock to the service, brands paying attention to the market climate have the opportunity to get in early by staying on top of their market intelligence. And keeping tabs on revenues, ad spend and region-specific VOD conversations will help keep them a step ahead in the consumer intelligence department as well.
Consumer & Market Intelligence as Brands’ Best Competitive Tool
Staying competitive is a seemingly never-ending job of innovation based on sound consumer and market intelligence. And with the aim of finding new advertising opportunities, it’s always a good bet to keep an eye on those already moving in the space you have your eye on.
As far as VOD advertising in the EMEA region is concerned, turning your attention to ITV, the UK’s largest commercial broadcaster is a great start. They’ve just rolled out Planet V, their one-stop-shop VOD advertising solution meant to ease the ad-buying process for advertisers on its ITV Hub VOD service.
For a market intelligence perspective, our digital media advertising analysis of top-tier sources reveals ITV occupying its own topic cluster within the top ten and carrying 3.1% of the conversation.
The articles returned in the news and blogs dataset here reveal a familiar story of drops in ad revenue, a period of adjustment and an emerging revenue rebound. What makes the ITV Hub unique here is how its Planet V platform offers an automated, configurable approach to marketing that allows brands to customize their targeting options within the VOD service. If it’s a hit, then it’s going to influence how VOD marketing is done.
Consumer Intelligence Driving Decision-making
And whether your brand would want to compete with what ITV is doing, or advertise with them, pulling the social media conversations into Quid Social will inform your consumer intelligence, helping you to stay competitive.
Below is ITV’s social conversation over the last month in a bar chart, with bars representing sentiment summary.
At a cursory glance, the positives and neutrals far outweigh the negative posts. And given the heat that media companies have endured this year for one reason or another, they’re looking pretty good here.
Further digging into the analyses on both the market and consumer end will reveal the true health of the brand and the market they’re operating in. However, knowing what they’re up to in the midst of the burgeoning VOD market within the EMEA region will be great intel to have for competitors and marketers alike.
VOD looks like it’s going to keep pushing forward in spite of the coronavirus. And consumer and market intelligence powered by next generation artificial intelligence (AI) is the way top brands have remained so agile during the pandemic in staying in front of emerging trends like this one.
Is your brand ready to pull the trigger on emergent advertising opportunities? Be sure to reach out for a demo and make sure you never miss a thing!